Michael Healy-Rae (Kerry, Independent)
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204. To ask the Minister for Finance if he will put forward a proposal (details supplied) at EU Council level; and if he will make a statement on the matter. [1087/19]

Paschal Donohoe (Dublin Central, Fine Gael)
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EU Directive 92/83/EEC deals with the harmonization of the structures of excise duties on alcohol and other alcoholic beverages. This Directive provides that Member States may apply reduced rates of excise for small beer producers and also for small distilleries (spirit drinks producers). Ireland has exercised the option to apply reduced rates of excise for small beer producers.

Having regard to public health concerns, Directive 92/83/EEC set the production threshold for the application of excise relief for small distilleries at 10 hectoliters of pure alcohol per annum. In fact only seven Member States apply an excise relief for small distilleries and the commercial viability of such a scale of production was found by the European Commission to be very limited, most beneficial to ancillary producers.

A proposal to amend the current Directive 92/83/EEC was published by the European Commission in 2018. The legislative proposal includes an option for Member States to apply reduced rates of excise for cider and other fermented drinks, but it does not amend the existing small distilleries threshold nor is there any discernible interest among Member States in making any such amendment.